Energy Sec. Wright: Want Lower Gas Prices? Drive Less
Energy Secretary Chris Wright says gas prices should ease after Labor Day as summer driving demand fades, even as the national average sits at a record $4.14 amid the Iran war.
US Energy Secretary Chris Wright told Sunday morning viewers that the fix for high gasoline prices is, essentially, less driving. Wright said gasoline prices should ease after Labor Day — not because the Iran war is ending, but because Americans will drive less.
What Wright actually said
“As we pass Labor Day tomorrow, you’ll start to see demand decline as we move out of summer driving season,” Wright said on ABC’s “This Week.” The message: seasonality, not policy, will do the work.
Wright also said the Trump administration’s deal to secure 65 billion barrels of oil reserves from Venezuela will help. On Truth Social, President Donald Trump said in August the deal would “substantially” lower gas prices, though analysts said that could take a while given Venezuela’s underdeveloped oil infrastructure.
Where prices actually are
The American Automobile Association said Labor Day weekend travelers are seeing the highest gas prices ever for this time of year. The national average for regular gas was $4.14 on Sunday, a 4-cent increase from late August and a 38% increase since before the war began.
“The national average has never been above $4 per gallon on Labor Day. The current Labor Day record is $3.82, set on September 3, 2012,” AAA said.
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The Iran overhang
Oil and gas prices across the US have remained high amid the ongoing US-Israeli war with Iran. The US and Iran traded multiple strikes on each other’s oil tankers over the weekend. That is the supply-side risk traders still have to price in, no matter what the summer driving calendar says.
The cost of living, including the cost of gas, has become a critical issue for the Trump administration ahead of the midterm elections. Bringing down prices for American consumers was a central promise during the president’s election campaign.
Options market and stocks to watch
Higher-for-longer pump prices and a live geopolitical risk premium keep the energy complex in focus. A few names traders may want to monitor:
- XOM — watch for flow tied to sustained crude strength and refining margins.
- CVX — Venezuela headlines and any sanctions clarity could drive positioning.
- USO — a direct read on WTI as the market weighs post-Labor Day demand.
- XLE — broad energy sector proxy for sector rotation off the headline.
- OXY — watch for options flow as US crude producers react to Iran tanker strikes.
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